Connecticut
Medicaid Managed Care Council

Legislative Office Building Room 3000, Hartford CT 06106
(860) 240-0321 Info Line (860) 240-8329 FAX (860) 240-8307
www.cga.state.ct.us/ph/medicaid


 

Meeting Summary:  February 20, 2004

Chair:  Sen. Toni Harp          Vice-Chair:  Sen. Edith Prague

 

Present:  Sen. Toni Harp (Chair), Rep. Vickie Nardello, Rep. David McCluskey, David Parrella & Rose Ciarcia (DSS), Barbara Parks Wolf (OPM), Thomas Deasy (Comptroller’s Office), M.L. Fleissner for Dr. Ardel Wilson (DPH), Ellen Andrews, Dr. Wilfred Reguero, Dr. Edward Kamens, Dr. Alex Geertsma, Janice Perkins (Health Net), Dr. Hank Goldstein, Jeffrey Walter.

 

Also present:  Dr. Mark Schaefer & Hillary Silver (DSS), William Diamond (ACS), Paula Smyth (Anthem BCFP), Sylvia Kelly (CHNCT), Douglas Hayward & James Gaito (Preferred One), Judith Solomon, Deb Poeria (SBHC), Mariette McCourt (Council staff).

 

Medicaid Council Subcommittee Updates

Ø      Behavioral Health, Jeffrey Walter, Chair:  Created a BH Pharmacy Work Group, a collaborative process among psychiatrists, clinics, MCOs, DSS, and DCF to improve administrative procedures related to patient access to psychotropic drugs.  Expect to have a report on the BH outpatient outcomes study at the March 16 meeting, continued updates on BHP and KidCare and clinical applications of a variety of Intensive Home Based Services.

Ø      Consumer Access, Irene Liu & Christine Bianchi, Co-Chairs:  addressed several key health care coverage access items with DSS follow up: 1) HUSKY member address changes – the DSS is working with central office and Regional staff to approve procedures for the acceptance of address changes and allow MCOs to submit an electronic file to DSS with updated changes, 2) HUSKY A eligibility differences between the AEVS system and MCO records – providers should check with the patient’s MCO plan for member status, as this is updated daily; HUSKY B eligibility status is not part of the AEVS system, therefore providers should contact ACS, give their Medicaid provider ID in order to receive patient HUSKY B eligibility verification, 3) delays and confusion about the DSS policy for expedited eligibility for pregnant women is being addressed through regional training programs for community-based organizations and regional DSS staff.

Ø      Quality Assurance, Paula Armbruster, Chair: The HUSKY Obesity Work Group has developed a provider information matrix regarding obesity-related services and will consider further recommendations to the full Council.  The Subcommittee is 1) developing revisions to adolescent anticipatory guidance items for the State EPSDT periodicity table form, 2) will identify focus issues at the 2/26 meeting.

 

Department of Social Services

HUSKY/Medicaid Program Update

The DSS was asked to discuss the current status of the various State Plan Amendments (SPA) originating from the 2003 legislative session (see attachment of the overhead presentation):

·             Public Hospital disproportionate share (DSH) was submitted to allow CT to claim a federal match (FFP) of 175% for costs incurred in service delivery in CT’s only public hospital, John Dempsey.  Congress has extended the window for this FFP rate for public acute care hospitals for FFY04-05.  The Centers for Medicare & Medicaid Services (CMS) continues to question the State about the appropriateness of replacing state funds for JD hospital operating expenses with Medicaid, which allows the federal match.

·             The State has received approval from CMS for a federal match for services delivered in the State general assistance (SAGA) outpatient, medical and GABHP.  Prior to this, CT only claimed acute inpatient SAGA stays under Medicaid, using the DSH program as the vehicle.

·             Urban DSH expansions for several acute care hospitals has been approved by CMS, with the effective date 10/1/03. Council members noted it will be important to distinguish what the hospitals receive compared to the State.

·             Non-emergency medical transportation SPA makes a technical change in CT regulation language in order to be compatible with federal regulations. Transportation for ‘medically necessary covered services” was replaced with “Medicaid covered services”. 

·             Rehab option SPA was sent to CMS 12/03.  There have been ongoing discussions with CMS on the list of services, the rate methodology, distinction of IMD vs. non-IMD facilities.

o       An IMD facility, defined as less than 16 beds whose sole services are mental health services for recipients aged 21-65 years, is ineligible for Medicaid match.

o       Targeted Case Management (TCM) needs to be defined separately, according to CMS, in the rehab option so as not to claim federal match twice for the same service.  The TCM traditionally allow broader case management beyond linkage to Medicaid, as determined by agencies that may apply TCM to specified populations.  For example DMHAS released a policy transmittal in the 2003 summer that identifies diagnostic codes that would be under the agency’s TCM.

o       While the Governor’s FY05 budget focused on CT rehab options for mental health and substance abuse residential services, the Mercer (CT actuarial consultant) report identifies a range of services that might be included in the Behavioral Health Partnership among DSS, DCF & DMHAS.  The state statute is rather broad in this regard.

·             The SPA for HUSKY B will be submitted to CMS the last week of February.  When asked what would happen if 2004 legislation rescinds the HUSKY B changes, the DSS stated that if CMS had approved the SPA based on 2003 legislation, the SPA would have to be changed if subsequent legislation is enacted.  If the SPA is still under review with CMS, the State can rescind the amendment.  The DSS reviewed the HUSKY B changes in the SPA:

o       New premiums in Band 1, (family income >185%-235% FPL): $30/child/month and $50/month for families with 2 or more children enrolled in HUSKY B.

o       Increased premiums for band 2, (families with income 235-300%FPL): increased to $50/child/month and $75/month for 2 or more children enrolled in HUSKY B.

o       The combined amount of premium & co-pays cannot exceed 5% of family income.  The maximum family cost share is now $760/year.

 

Senator Harp and other Council members requested the DSS provide the amount of state savings associated with each of these SPA that was allocated to the General Fund.

 

Other

·             The DSS has had to focus attention on the SPA and major potential policy changes such as the BHP, and less on the HIFA 1115 waiver.

·             HUSKY adults(16,000) under the 2nd Appeals Court of New York restraining order (TRO) remain insured in HUSKY A.  They will remain covered until the court issues a decision.

·             The DSS was asked if CT was considering implementing the ‘Kentucky Plan’ in relation to Medicaid co-pays, in which providers other than FQHCs, hospitals or nursing homes, are informed by the State that they may refuse future services to Medicaid clients that have unpaid fees such as co-pays.  The DSS stated such a plan has been developed but is on hold at this time.

·             The DSS internal/external review team has scored dental ASO bidder responses.  The selection recommendation will be made to the Commissioner and then be announced publicly.

 

Federal Medicaid Policy Changes

The CMS had planned to require states (notice in Federal Register 1/7/04) to submit their proposed budgets to CMS 5 months prior to the new SFY (by February in CT) so the federal government could identify the source of federal match dollars and evidence of state programs associated with federal match dollars.  This proposal is related in part to states, with county health delivery services that set a high rate for the county services that are transferred back to the state (intergovernmental transfer-IGT) and for which some states have received high FFP rates.  Connecticut would probably continue to receive the same federal revenue, as there is little IGT, but would have more reporting requirements as well as CMS questions to the legislature regarding the budget process.  Subsequent to bipartisan comments, the CMS has agreed to reissue the same or revised proposal and allow a 60-day comment period.  Comments:

·             The DSS noted that historically, the Medicaid budget has not been fully funded, with budget adjustments made for DSS deficiencies mid-year.  Under the CMS proposal, the State may be required to explain the Medicaid deficits and need for additional state funds before the federal match would be approved.

·             Sen. Harp noted that this may require the State to assess the constitutional spending cap since the state consistently under-budgets Medicaid.

 

HUSKY A Dental/Behavioral Health Revenue/Expenditure Reports

The DSS had stated they could comply with the request to present data on administrative & medical revenue and expenditures and profit margin for dental and BH services; however individual plan information could not be released until the dental/BH ASO selection process was complete.  Legislation requires the DSS to report on managed care plans’ at –risk subcontractor revenues and expenses quarterly to the Medicaid Council.   The Council found the information reported at this meeting incomplete, absent aggregate administrative/medical and profit margin information.  Further, while skeptical about the reports’ adverse impact on the ASO process since the carve-out includes populations other than HUSKY; the council members requested plan specific data be reported as soon as possible.  It is important that the public have information on each MCOs use of state/federal dollars in service delivery for dental and behavioral health care.

 

Total Paid and Per Member Month, HUSKY A

 

2002

1st half 2003

Behavioral health

 

 

Member months

3,441,027

1,801,882

Net BH Expenditures

$49,463,122

$29,004,203

Reinsurance payments

$23,107,956(represents 46% of total BH expenditures)

$12,249,921(represents 42% of total BH expenditures)

$ PMPM

$14.37

$16.10

Dental

 

 

Member months

3,441,027

1,801,882

Dental care Expenditures

$26,282,728

$14,464,683

$ PMPM

$7.64

$8.03

 

·             The BH reinsurance dollars represent 42-47% of the total dollars spent in BH services; the State pays the MCOs reinsurance dollars for inpatient stays beyond medical necessity. 

·             Senator Harp stated that lack of available community resources contributes to these high reinsurance costs.  The Senator believes that leadership outside the state agencies is needed to put resources into the community level care system; the development of step down levels of care in the Behavioral Health Partnership plan is not clear.  The Senator stated it would seem, based on meetings with some providers, that DCF has failed to reach out to those providers that have indicated available resources for step-down beds.

·             Dr. Schaefer (DSS) stated that there is every expectation of future improvement in the BH delivery care model when incentives for long inpatient stays are removed, DCF will be better able to manage the length of stay in residential facilities and that conversion from a grant system to a FFS system allows flexibility for the growth of the community system. 

·             Preferred One reported a 24% reduction in the plan’s State reinsurance dollars over a year as the BH subcontractor worked with providers to develop community–based care.

·             Based on the 1st half 03, dental/BH PMPM dollars and the statewide aggregate FY03 MCO PMPM rates:

o       2003 Dental PMPM dollars represent 4.7% of total PMPM rates, while BH represents 9.4%. 

o       The dental PMPM dollars increased by 4.7% ($.39) from 2002 to 2003, while the BH PMPM dollars increased by 11% ($1.73) in 2003.

 

The Council requested the MCOs come to the March meeting prepared to discuss how the health provider rates have been impacted by the MCO rate increases.

         

Trends in Dental and EPSDT Utilization

The Department was asked to present EPSDT service utilization trends by age over the life of the managed care program.  The HICFA 416 reports are the source of the data presented. Of note, FFY 1995-96 data represents non-managed care data and from 1999 forward adolescents are required to receive yearly EPSDT services, which changes the denominator (required EPSDT visits) and may result in lower ratios.   Screening ratio is that percent of recommended well child screens received, participation ratio is the percent of children/youth receiving well child screens.  EPSDT discussion:

·             EPSDT screening ratio for all HUSKY A children has increased and remained at about 70% from 2000-02. FFS ratio was about 50% in 1995-96.

·             EPSDT participation ratio for all HUSKY A children has increased and remained constant from the FFS 42% level to about 55% from 2000-02.

·             There was a decrease in both ratios in 1999, influenced by the 20% drop in adolescent ratios.

·             The reduction in both the <1 age group ratios in 2001 is unexplained. Overall screening and participation ratios have increased since 1999 by 20-30 % points for the <1 and 1-5 age groups compared to lower FFS ratios of 40-50%.

·             The 6-14 age group has increased to a plateau of a 55% screening ratio, and 50% participation ratio since 2000 (FFS screen rates were about 45%).

·             The 15-20 age group, while improved from the FFS period (<20%) to 50% screen ratio, the participation ration remains flat at 32% (25% in 95-96) since 2000.

·             Sen. Harp asked the MCOs if they are targeting the 15-20 age group to improve preventive care visit utilization:

o       CHNCT stated they have developed a Youth Council to determine what would engage youth in preventive care and plan to test incentives to see if there is an accompanying improvement in utilization.

o       The DSS has added contract language for MCOs to develop outreach to this age group to improve utilization of preventive care.

 

Sen. Harp requested the four MCOs discuss their plans to target adolescent preventive care at the April Council meeting.  The Senator also asked if there could be an assessment of what the preventive visit includes, since the relevance of preventive care and adolescent engagement may be influenced by the content of the visit.  Sen. Harp also noted that mandatory school exams increase the EPSDT rates.  The Senator suggested that if professional organizations believe more frequent preventive visits are appropriate, they may influence state-level health policy regarding this.

 

Discussion of dental utilization:

·             The pattern of higher preventive dental service utilization under FFS compared to HUSKY A is evident among all age groups.  The percentage of children who have received preventive dental services is actually slightly less than FSS rates in 1995-96: 32-38% FFS compared to 32-35% since 1998.  HUSKY A preventive care includes cleanings, fluoride, sealants, but not exams.

·             Preventive dental care for the 1-5 age group also is over 10 % points lower since 95-96 FFS:  25-30% FFS compared to 17-20% since 1999. The reduction is also seen in the 6-14 and 15-20 age groups.

·             The percentage of children receiving any dental service from FFY 1999- 02 has shown a fairly flat rate of 35-38% in the age 3-5 group, a higher but constant rate of 45-50 % in the 6-9 and 10-14 age group and some increase in services (about a 5% increase) for the 15-20 year age group.

·             The exclusion of oral exams from the preventive dental care data may result in under- counting preventive services.  The DSS was asked to do a test run on exam/cleaning data to identify differences.

·             The DSS was asked to use the data to identify where the services were performed. This information could better inform budget decisions about allocations.

 

HUSKY Enrollment

William Diamond reviewed the ACS call volume and enrollment changes effective January 2004:

·             Call volume to the HUSKY call center increased by 2622 calls, many of which were related to the HUSKY B premium change notices.  There were similar increases last year when notices were sent out regarding HUSKY changes such as continuous eligibility.

·             Overall HUSKY A enrollment increased by 1335 members.

o       Adults (including parents/caregivers at or <100%FPL) increased by 407 members.

o       Under 19 enrollment increased by 928 members.

o       HUSKY B children’s enrollment decreased by 472.

 

Council discussion related to HUSKY A & B eligibility:

 

·             At the Council request the DSS will:

o       Provide the council with RWJ Retention reports that track ‘churning’ in the HUSKY program with a one month look back at the status of those who had lost eligibility in the previous month

o       Work with ACS to identify the percentage of adults(4079) & children (7536) that lost eligibility in June/July 2003 that have come back on the system.

·             The impact of the HUSKY B premium changes will be evident in the March enrollment data.  Anthem BCFP commented that they have added 4 staff to deal with the HUSKY enrollment changes.  Additional MCO staff increases administrative expenditures that, when included with DSS/ACS administrative costs, may well offset some of the savings projected with the cost sharing increases.

·             Health insurance loss/gaps secondary to the HUSKY B changes and HUSKY A elimination of continuous eligibility, presumptive eligibility have begun to alter the care delivery system with possible increased demand on the ‘safety net’ system. 

o       Sen. Harp requested the DPH to report on the SBHCs experience with trends in the uninsured.

o       The CT Hospital Association will be asked to provide information on changes in the insured/uninsured in Emergency Departments and hospital clinics.

·             According to one practitioner, the hospital clinic practice enrollment sheets are identifying more uninsured children, who may be referred to the FQHC for general services.  The hospital, which provides specialty services, requires payment ‘up-front’ by the uninsured family.  There was a discussion about hospital DSH payments and if hospitals can include outpatient uncompensated care along with inpatient care in the DSH claims.  While the federal government allows outpatient and inpatient care in determining hospital DSH amounts, CT statutes determine hospital’s obligations related to the acceptance of DSH dollars and the provision of uncompensated care (there does not appear to be such statutory obligation).  The amount budgeted for hospital DSH payments also influence the distribution of DSH for inpatient versus outpatient services.

 

The Medicaid Council will meet Friday March 12, 9:30 AM in LOB RM 2D.